What is an NFT? Non-Fungible Tokens Explained
NFTs explained simply: what non-fungible tokens are, how they work, and what they are used for.
What is an NFT?
An NFT (non-fungible token) is a unique digital asset stored on a blockchain. Unlike cryptocurrencies, each NFT is one of a kind and cannot be exchanged for another.
NFTs can represent digital art, collectibles, music, virtual land, and more.
How do NFTs work?
NFTs use smart contracts, mostly on Ethereum, to prove ownership and authenticity of a digital item.
When you buy an NFT, you own a token that points to a specific digital asset, recorded on the blockchain.
What are NFTs used for?
NFTs are used for digital art, gaming items, virtual real estate, and membership passes.
They allow creators to sell digital work directly and earn royalties on resales.
FAQ
What does NFT stand for?
Non-fungible token — a unique digital asset that cannot be replaced.
Are NFTs a good investment?
NFTs are highly speculative. Prices can drop to zero. Only invest what you can afford to lose.
How do I buy an NFT?
You need a crypto wallet and some ETH, then buy on a marketplace like OpenSea.